In this week’s edition:

• DEA Awards Seventh Cannabis Cultivation License for Research
• First Circuit Strikes Down Maine State Residency Requirement under Dormant Commerce Clause
• Florida Emergency Rule Limits Medical Marijuana Treatment Center Websites
• Virginia Promulgates Regulations Governing the Manufacture and Sale of Hemp Extracts
• Costa Rica President Announces Bill Initiative for Adult-Use Cannabis

Federal

Calls for Equity-Centered Changes to SAFE Banking Act – Senator Cory Booker (D-NJ), one of the sponsors of the Cannabis Administration and Opportunity Act, has called for changes to the Secure and Fair Enforcement (SAFE) Banking Act before it can advance. Sen. Booker did not specify the types of changes he wants to see, but his comments come amidst efforts by the Cannabis Regulators of Color Coalition (CRCC) to make equity-centric amendments to the Act. Specifically, the CRCC recently recommended 10 proposed changes, which include using tax revenue to create a fund providing capital for businesses owned by people harmed by the war on drugs, and requiring financial institutions to demonstrate compliance with anti-discrimination laws.

Former Senator Urges Congress to Act on Cannabis – Former Senator Tom Daschle (D-SD) published an op-ed explaining his evolution on cannabis legalization. As he explains, the more he “reviewed he data and talked to scientists, policy experts, activists, and business owners; it became clear to [him] that the cannabis movement is here, and policymakers must get cannabis regulation right.” While cannabis legalization should still happen at the state level, Daschle believes, Congress needs to pass a “research-based, equitable and comprehensive national framework for cannabis reform to standardize approaches to key issues.”

DEA Awards Additional Cannabis Cultivation License for Research – The US Drug Enforcement Administration (DEA) issued a cannabis cultivation license to Maridose to manufacture and supply cannabis for research purposes. Maridose, which is based in Brunswick, Maine, is now the seventh company to receive such a license.

First Circuit Strikes Down Maine State Residency Requirement under Dormant Commerce Clause – The US Court of Appeals for the First Circuit affirmed a district court ruling striking down Maine’s state residency requirement for the officers and directors of medical cannabis dispensaries. The First Circuit found that the federal Constitution’s dormant commerce clause—which prohibits states from enacting laws that place a substantial burden on interstate commerce—applied to the medical cannabis industry, despite the federal prohibition on cannabis. This is the first time a federal appellate court has addressed this issue, and the First Circuit’s opinion could have a significant impact on the cannabis industry.

Proposed Bipartisan House Bill Clarifies “Right to Try” Law – Six US House representatives, including both Democrats and Republicans, introduced the Right to Try Clarification Act, which would clarify that the Right to Try Act applies to Schedule I substances for which a Phase I clinical trial has been completed, giving eligible patients access to such substances. This comes just one month after a similar bill was introduced in the Senate.

States

State Ballot Initiatives for Adult-Use  – Voters in Arkansas, Maryland, Missouri, North Dakota, Oklahoma and South Dakota could vote this fall to decide whether to legalize adult-use cannabis. While ballot initiatives in some of these states are facing legal challenges or awaiting signature verification, if all six initiatives are successful, adult-use cannabis would be legal in half of all US states.

AL – In response to public comments, the Alabama Medical Cannabis Commission issued updated rules and regulations for the state’s medical cannabis program. Notably, dispensaries are no longer required to be standalone buildings. Other updates include changes to the definition of a cannabis batch and security requirements.

CA – A bill has been introduced in California that would prohibit employment discrimination by employers based on urine or hair tests that detect inactive metabolites of THC, which offer poor indicators of impairment. The bill would still allow employers to use oral swabs or computer-based performance tests.

DC – The District of Columbia saw a spike in medical cannabis registrations a month after allowing residents to self-certify as medical cannabis patients. Industry observers expect to see continued growth in patient registrations with the new self-certification option.

FL – A proposed constitutional amendment for adult-use cannabis was filed with Florida’s Division of Elections to get the measure on the state ballot in 2024. The amendment could get rid of the state’s current vertical integration system, which requires medical marijuana treatment centers to conduct all aspects of operations. The Florida Supreme Court must approve the proposed amendment before it can be put on the ballot.

FL – An emergency rule issued by Governor Ron DeSantis (R) imposes new requirements on medical marijuana treatment center websites. Under the emergency rule, treatment centers can only maintain one department-approved website and are prohibited from offering website purchasing services without first obtaining approval from the state. The emergency rule, which gives treatment centers 60 days to comply, comes after the state lost a legal battle to ban treatment centers from contracting with third-party websites that offer website purchasing services.

ID – Organizers in Idaho filed a proposed ballot initiative to legalize medical cannabis. The initiative would allow registered patients to access cannabis for chronic diseases or terminal illnesses. Although supporters are optimistic this initiative will appear on the 2024 ballot, several previous efforts in the state have failed due in part to procedural roadblocks from state officials.

MI – Michigan’s Cannabis Regulatory Agency (CRA) issued a technical bulletin providing “Expectations for Maintenance of Standard Operating Procedures.” In addition to providing guidance on the contents of standard operating procedures, the bulletin lists the standard operating procedures the CRA would expect cannabis businesses to maintain. These include procedures addressing cannabis delivery, employee health and age verification.

MI – Michigan set a new monthly record for cannabis sales in July. Sales reached almost $210 million, with a large majority—$188 million—coming from adult-use purchases. Most of the sales were for flower products, followed by vape cartridges.

NE – The Advisory Committee to Nebraska Attorneys has said in an advisory opinion that attorneys in the state (and their spouses) may invest in medical cannabis businesses in states where cannabis businesses are legal without violating Nebraska’s professional code of conduct. Nebraska, to date, does not permit the use of either medical or recreational cannabis.

NE – Proposed ballot measures intending to legalize medical cannabis in Nebraska failed to obtain the required number of signatures and, thus, will not appear on the upcoming November ballot. Secretary of State Bob Even (R) noted the measures fell about 9,000 signatures short of the 86,776 threshold needed to qualify for the ballot.

NV – Nevada’s Supreme Court affirmed a district court decision holding that employees may be fired for cannabis use. Danny Ceballos attempted to sue his former employer citing a state statute creating a “private right of action” for employees who are fired for the lawful use of any product outside their work premises while off duty. But the justices disagreed that there was such a right, noting that, among other things, the drug remains illegal federally.

NJ – In a long-awaited report for a case before the state’s supreme court, a court-appointed special master, Appellate Judge Joseph Lisa, has concluded that the testimony of drug recognition experts (DRE) is admissible evidence in establishing whether, for example. employees or drivers are impaired. The case currently before the state supreme court centers on the use of DREs by police departments to identify impaired drivers, and arrives just as the state’s Cannabis Regulatory Commission is setting workplace cannabis standards regarding how employers can determine who is high while on the job.

NY – New York City police are reportedly cracking down on vendors illegally selling cannabis products. The city’s police department posted video of 19 vehicles seized off city streets for allegedly selling cannabis products without permits. New York legalized cannabis last year for adults 21 and older, but the state's first licensed retail shops are unlikely to open until the end of the year.

ND – Secretary of State Al Jaeger’s (R) office has approved a recreational cannabis legalization measure, certifying that the activists had submitted enough valid petitions to put the measure before voters in upcoming elections this November. The measure would allow, among other things, adults 21 and older to purchase and possess up to one ounce of cannabis and grow up to three plants for personal use. Its provisions largely mirror a house-passed legalization bill that was ultimately rejected by the state senate.

TX – According to new polling, 55 percent of Texans say they either support or strongly support the legalization of cannabis for recreational use. The numbers are even higher for medical use: 72 percent of those surveyed said they would either support or strongly support the legalization of cannabis in Texas to help treat illnesses. While the state does permit registered patients access to low-THC cannabis, Governor Greg Abbot (R) remains a staunch opponent of any broader cannabis legalization efforts.

WI – According to a new Marquette Law School Poll survey of Wisconsinites, 69 percent of those surveyed favored cannabis legalization. Broken down by party, 81 percent of Democrats, 75 percent of independents and 51 percent of Republicans favored legalization in the state.

Hemp/CBD

Virginia Promulgates Regulations Governing the Manufacture and Sale of Hemp Extracts to Consumers – The regulations establish a regulatory framework for industrial hemp extracts and foods in the state, and provide requirements relating to inspections, laboratory testing, and labeling of hemp products. Virginia’s move follows similar actions by a growing number of states seeking to regulate the booming hemp-derived cannabinoid product market.

International

Colombia – Flora Growth and Colombian Organics have become the latest companies in the country to export dried cannabis flower. The two firms are part of Colombia’s growing list of cannabis businesses involved in the country’s cannabis export trade. According to Asocolcanna, the Colombian cannabis industry association, the nation is likely to become the primary global supplier of cannabis because of its unique competitive advantages, including its 12 hours of sunlight per day throughout the year.

Hong Kong SAR – Hong Kong has begun cracking down on CBD businesses. An unregulated market in goods containing the cannabis-derived compound quickly flourished in the city after the city’s first CBD cafe opened in July 2020. Mainland China banned the substance in 2021.

Switzerland – As part of a pilot study into regulating cannabis, the country is permitting the sale of cannabis to a small group of research participants in Basel.

Costa Rica - President Rodrigo Chaves announced a bill initiative for congressional approval that would create a regulated market for recreational cannabis. The president also confirmed that his administration would soon publish regulations for medical cannabis.

Medical/Health

Australian Study Finds Meaningful Improvements in Sleep, Fatigue and Pain Reduction for Patients Prescribed Oral Cannabis Formulation – In a study analyzing the outcomes of patients prescribed cannabis for pain symptoms lasting at least three months, patients reported significantly reduced pain impact scores. Additionally, no serious adverse events were reported.

Please click here for more information on the Dentons US Cannabis group.

Authored by associates Jacob Raver and Margo Wilkinson Smith.